- Access Intelligence makes an offer to acquire all shares in media intelligence company Isentia (ISD) at a 157 per cent premium to the last closing price
- The AIM-listed technology company is offering 17.5 cents per ISD share, implying an equity value of $35 million and an enterprise value of $67 million
- Given no superior proposal is put on the table, Isentia's board intends to recommend shareholders vote in favour of the offer
- Isentia has also released unaudited figures for the financial year to date, showing EBITDA and revenue are down in the wake of a cyber attack in October
- News of the proposal sent ISU shares 143 per cent higher to trade for 16.5 cents at 11:49 am AEST
Access Intelligence has made an offer to acquire all shares in media intelligence company Isentia (ISD) at a 157 per cent premium to the last closing price.
Access Intelligence proposal
The AIM-listed technology company is offering 17.5 cents per ISD share, which also represents a 144 per cent premium to the one-month volume-weighted average share price of 7.2 cents.
The proposal implies an equity value of $35 million and, when combined with a $32 million net debt balance, an enterprise value of $67 million.
Isentia Chairman Doug Snedden said the Board unanimously concluded the scheme would be in the best interests of shareholders.
"The price represents a significant premium to the current trading price. Access Intelligence's offer provides Isentia shareholders with certainty of value and the opportunity to realise their investment in full for cash. Isentia's operations will also benefit from Access Intelligence’s intention to repay senior debt."
Access Intelligence CEO Joanna Arnold added the acquisition of the Sydney- headquartered business offers several synergies and expansion benefits.
"Isentia is a leading media intelligence company in Australia and across the Asia Pacific. Access Intelligence and Isentia are aligned culturally and strategically, and customers will benefit from a product offering that gives them more choice with a broader geographical reach."
The implementation of the scheme is subject to several conditions including approval by Access Intelligence and Isentia shareholders, as well as court approval. Isentia expects to call a meeting in August for its shareholders to cast their votes.
Isentia has also released unaudited figures for the 11 months to the end of May 2021, showing both earnings before tax interest depreciation and amortisation (EBITDA) and revenue were down on the previous year.
In the 2021 financial year to date, the company has generated an EBITDA of $76.4 million compared to $93.9 million at same point in the year before, and revenue of $12.8 million as opposed to$22.5 million.
The subdued results were primarily attributed to a cyber incident in late October 2020 which disrupted the company's software as a service platform Mediaportal.
Isentia's share price has never fully recovered from the fallout of the event; on October 26 — the day before the incident — shares were trading at 18.5 cents but by the time the company advised all services had been restored on November 18, shares were trading at 12 cents.
Today, Isentia said the cybersecurity attack had an estimated direct impact to the tune of around $3.3 million on revenue, $4.4 million on earnings before interest and tax and $4.4 million on cash.
Further, the company added the incident also delayed projects designed to reduce churn in the business, exacerbating the financial impact of the event.
ISD shares were trading 143 per cent higher at 16.5 cents at 11:49 am AEST.